Written by: Sophie Hau, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
How to move from being stressed to being fully confident regarding money? How to move from blaming others to taking responsibility for your finances?
My clients come to see me because they believe they have money issues and that earning more is the only solution to their problems. The truth is that having money in your bank account is obviously a must to cover your needs. But once it's done, having extra money no longer solves their core issues, at least not as much as they think it would.
So what's the problem?
Being Rich Doesn't Mean You Feel Rich Or Know How To Manage Your Finances.
Having lots of money doesn't equal wealth. Money isn't something you own but rather something you have a relationship with. Bear with me. It may sound absurd to some of you, but let me tell you some real-life cases. One of my clients earns a lot, and society would consider him within the top wealth bracket, but still, he has spending issues, and his earnings can't keep up.
No one is born with a wealthy mindset, even your "rich" friend. That's why many multi-generational wealthy people lose their fortune with bad money management and unhealthy financial habits. And those "rich" people feel they don't have enough, that's why they are always chasing more. Ask any rich people; most of them will either tell you they aren't rich or overspend until accumulating debts.
If you aren't familiar with Boris Becker's story, he's a former world No. 1 tennis player who went from becoming a millionaire to bankruptcy.
I'm not saying that money doesn't contribute to happiness. It has been proven with lottery winners whose happiness always goes back to its initial level after a short period of time. Money alone will not fulfill you.
I have my personal experience of being money-avoidant and then an overspender. I thought my problem was a lack of financial education and money until I became a Financial Advisor and made over a 6-figure annual income and still didn't feel fulfilled and made the same financial mistakes.
Having A Healthy Money Mindset Means You're Confident With Money-Related Matters.
When you have a healthy relationship with money, you're on the path to true "wealth". You're confident in your earning power, know how to sell yourself, and are aware of who you are and who you want to become. You learn how to manage your finances, are conscious of your spending, invest for your future intentionally, know where your money goes in and out, and plan accordingly to your needs and wants.
It doesn't mean you're arrogant and you know it all. Instead, you recognize your strengths and weaknesses and know when to reach out for help. Regardless of a Financial Advisor, a Tax Expert, or a Money Coach, you assume your blind spots and take action accordingly. You understand your core issues and will do everything possible to meet your needs.
Like confidence, some people might have a healthier money mindset than others, but most importantly, you learn to grow it. We don't have confidence in everything at all times. For example, one can be confident at work but can lack it regarding love.
And nothing is permanent: we can have it and lose it at any time. So it needs to be continuously nurtured.
Today, I won't say I'm 100% confident with my finances at all times, but I have developed practical tools to use as soon as I face any financial uncertainties such as an investment. I share the same tools with my clients so they can use them even when I'm not around.
A Money Mindset Is Like A Muscle.
So, what makes some people have a healthier money mindset? Plenty of factors play a role: childhood experiences, how your family handled money, and how your surroundings talk about the rich or the poor…
The truth is that when you're a child or even a young adult, it's acceptable that you're not managing your money well or having a healthy money mindset. You're entering the adult world and want to experience as much as possible, and you learn from your mistakes.
Yet, when you enter your 30s, or even your 40s, working on your money mindset is necessary. Actually, it's your responsibility if you want to be happy professionally and personally, and be fulfilled in life. Blaming your entourage has an expiry date. You can't keep putting the responsibility on others for not acting. This is your life. You decide what life you want.
We aren't born with a healthy relationship with money; we cultivate it.
Sophie Hau, Executive Contributor Brainz Magazine
Sophie Hau is a Certified Money Coach (CMC)® who helps overspenders develop a healthy money mindset to create a wealthy life.
With over 15 years of experience working in non-profit, corporate, and entrepreneurship spanning 3 continents, her diverse career has led her to create a company bridging personal finances, coaching, and psychology: Moneysophy. In Ancient Greek, sophy (sophia) means "wisdom" and "technical skill." The mission is simple: popularising the tandem mindset + tools for true wealth.
